THE DIAMOND PAGE — SouthernEra Resources inks deal for Angolan diamonds

The lure of Angolan diamonds has proved tempting

for SouthernEra Resources (SUF-T). The company, which already has diamond projects in Canada and South Africa, has secured the rights to four alluvial diamond concessions in the West African nation.

The concessions cover several drainage basins downstream from diamondiferous kimberlite pipes. SouthernEra has the right to mine for diamonds both in active drainages and on the alluvial deposits associated with them.

In return for providing technical expertise and financing for the project, SouthernEra will receive 35% of the sales of diamonds from its production areas, and 10% from the sales of its partner, Sphere Trading.

SouthernEra was required to pay Sphere US$1.5 million cash and $1 million in shares.

In the past 10 months, Sphere’s operation has produced more than 48,000 carats of gem-quality diamonds with an average value of more than US$900 per carat.